Deal reached to make fantasy sports online games legal in NY, lawmaker says

Posted: June 8, 2016 at 5:57 pm

Daily Fantasy Sports NY Attorney General

In this Nov. 13, 2015, file photo, fantasy sports fans demonstrate outside the Financial District offices of New York state Attorney General Eric Schneiderman, in New York. Schneiderman ordered fantasy sports industry giants DraftKings and FanDuel to stop accepting play from New Yorkers, saying their business amounts to illegal gambling. Schneiderman maintains that New York law bans taking bets as a business, with exceptions for horse racing, casinos, state lotteries and certain other settings, but not daily fantasy sports sites. (AP Photo/Richard Drew, File) (Richard Drew)

ALBANY, N.Y. — A deal negotiated between the New York’s Legislature leaders would legalize fantasy sports online games in the state in return for companies like FanDuel and DraftKings paying an $150,000 fee, The Buffalo News reported.

The bill, which would allow thousands of New Yorkers to resume playing the online games, would need to be passed by both houses of the state Legislature, which has only five days of session remaining before it breaks for the year.

It would also have to be signed by Gov. Andrew Cuomo, whose office said negotiations were continuing, the New York Times reported.

New York Attorney General Eric Schneiderman sued DraftKings and FanDuel after sending them cease-and-desist letters last November, arguing they were essentially illegal gambling operations and violating state laws. The companies denied the charges, arguing fantasy sports games are games of skill, not chance.

Bonacic, R-Mount Hope, said the negotiated deal would lower the registration fee for the large fantasy sports companies to $150,000 for a three-year license. Prior legislative proposals had set the fee at $500,000.

Smaller fantasy sports companies, based on their revenue flow over a 12-month period, could pay state registration fees as low as $1,000, according to The Buffalo News.

The companies would also turn over to the state 15 percent of revenues after prizes were awarded to players.

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